Canadian Western Bank (CWB.CA) Stock Fundamental Analysis
TSX:CWB - Toronto Stock Exchange - CA13677F1018 - Common Stock - Currency: CAD
Overall CWB gets a fundamental rating of 3 out of 10. We evaluated CWB against 31 industry peers in the Banks industry. Both the profitability and financial health of CWB have multiple concerns. CWB is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year CWB was profitable.
CWB had a positive operating cash flow in the past year.
In the past 5 years CWB has always been profitable.
CWB had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
With a Return On Assets value of 0.62%, CWB perfoms like the industry average, outperforming 40.63% of the companies in the same industry.
Looking at the Return On Equity, with a value of 6.14%, CWB is doing worse than 90.63% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.62% | ||
| ROE | 6.14% | ||
| ROIC | N/A |
ROA(3y)0.71%
ROA(5y)0.75%
ROE(3y)7.5%
ROE(5y)7.85%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
The Profit Margin of CWB (22.63%) is comparable to the rest of the industry.
CWB's Profit Margin has declined in the last couple of years.
The Operating Margin and Gross Margin are not available for CWB so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | 22.63% | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-11.12%
PM growth 5Y-6.09%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
CWB does not have a ROIC to compare to the WACC, probably because it is not profitable.
CWB has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, CWB has more shares outstanding
The debt/assets ratio for CWB is higher compared to a year ago.
2.2 Solvency
The Debt to FCF ratio of CWB is 7.63, which is on the high side as it means it would take CWB, 7.63 years of fcf income to pay off all of its debts.
CWB has a Debt to FCF ratio of 7.63. This is in the better half of the industry: CWB outperforms 62.50% of its industry peers.
CWB has a Debt/Equity ratio of 0.97. This is a neutral value indicating CWB is somewhat dependend on debt financing.
CWB's Debt to Equity ratio of 0.97 is amongst the best of the industry. CWB outperforms 90.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.97 | ||
| Debt/FCF | 7.63 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC16.41%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
The earnings per share for CWB have decreased strongly by -15.64% in the last year.
The Earnings Per Share has been decreasing by -0.78% on average over the past years.
The Revenue has been growing slightly by 6.41% in the past year.
CWB shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.56% yearly.
EPS 1Y (TTM)-15.64%
EPS 3Y-7.45%
EPS 5Y-0.78%
EPS Q2Q%-27.66%
Revenue 1Y (TTM)6.41%
Revenue growth 3Y5.23%
Revenue growth 5Y6.56%
Sales Q2Q%7.13%
3.2 Future
The Earnings Per Share is expected to grow by 12.25% on average over the next years. This is quite good.
CWB is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.44% yearly.
EPS Next Y14.77%
EPS Next 2Y12.25%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year6.13%
Revenue Next 2Y5.44%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 18.75, the valuation of CWB can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of CWB indicates a rather expensive valuation: CWB more expensive than 96.88% of the companies listed in the same industry.
CWB is valuated rather cheaply when we compare the Price/Earnings ratio to 29.63, which is the current average of the S&P500 Index.
CWB is valuated correctly with a Price/Forward Earnings ratio of 16.34.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CWB indicates a rather expensive valuation: CWB more expensive than 96.88% of the companies listed in the same industry.
CWB is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.68, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.75 | ||
| Fwd PE | 16.34 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, CWB is valued expensively inside the industry as 87.50% of the companies are valued cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.91 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
CWB's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as CWB's earnings are expected to grow with 12.25% in the coming years.
PEG (NY)1.27
PEG (5Y)N/A
EPS Next 2Y12.25%
EPS Next 3YN/A
5. Dividend
5.1 Amount
CWB has a Yearly Dividend Yield of 2.54%.
With a Dividend Yield of 2.54, CWB pays less dividend than the industry average, which is at 4.02. 90.63% of the companies listed in the same industry pay a better dividend than CWB!
CWB's Dividend Yield is comparable with the S&P500 average which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.54% |
5.2 History
The dividend of CWB has a limited annual growth rate of 4.68%.
CWB has paid a dividend for at least 10 years, which is a reliable track record.
CWB has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)4.68%
Div Incr Years31
Div Non Decr Years31
5.3 Sustainability
CWB pays out 58.26% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of CWB is growing, but earnings are growing more, so the dividend growth is sustainable.
DP58.26%
EPS Next 2Y12.25%
EPS Next 3YN/A
TSX:CWB (2/4/2025, 7:00:00 PM)
56.63
-0.62 (-1.08%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners30.8%
Inst Owner ChangeN/A
Ins Owners0.47%
Ins Owner ChangeN/A
Market Cap5.48B
Analysts70
Price Target53.46 (-5.6%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.54% |
Yearly Dividend1.62
Dividend Growth(5Y)4.68%
DP58.26%
Div Incr Years31
Div Non Decr Years31
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-26.69%
Min EPS beat(2)-30.52%
Max EPS beat(2)-22.86%
EPS beat(4)1
Avg EPS beat(4)-14.69%
Min EPS beat(4)-30.52%
Max EPS beat(4)1.04%
EPS beat(8)4
Avg EPS beat(8)-5.09%
EPS beat(12)5
Avg EPS beat(12)-4.04%
EPS beat(16)9
Avg EPS beat(16)0.69%
Revenue beat(2)1
Avg Revenue beat(2)0.26%
Min Revenue beat(2)-0.24%
Max Revenue beat(2)0.76%
Revenue beat(4)1
Avg Revenue beat(4)-1.19%
Min Revenue beat(4)-3.13%
Max Revenue beat(4)0.76%
Revenue beat(8)2
Avg Revenue beat(8)-1.56%
Revenue beat(12)2
Avg Revenue beat(12)-1.93%
Revenue beat(16)5
Avg Revenue beat(16)-1.43%
PT rev (1m)0%
PT rev (3m)8.71%
EPS NQ rev (1m)-7.22%
EPS NQ rev (3m)-8.8%
EPS NY rev (1m)-5.94%
EPS NY rev (3m)-5.94%
Revenue NQ rev (1m)-0.39%
Revenue NQ rev (3m)0.15%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.75 | ||
| Fwd PE | 16.34 | ||
| P/S | 4.63 | ||
| P/FCF | 9.91 | ||
| P/OCF | 8 | ||
| P/B | 1.26 | ||
| P/tB | 1.38 | ||
| EV/EBITDA | N/A |
EPS(TTM)3.02
EY5.33%
EPS(NY)3.47
Fwd EY6.12%
FCF(TTM)5.71
FCFY10.09%
OCF(TTM)7.08
OCFY12.5%
SpS12.23
BVpS45.05
TBVpS41.11
PEG (NY)1.27
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.62% | ||
| ROE | 6.14% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 22.63% | ||
| GM | N/A | ||
| FCFM | 46.7% |
ROA(3y)0.71%
ROA(5y)0.75%
ROE(3y)7.5%
ROE(5y)7.85%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-11.12%
PM growth 5Y-6.09%
GM growth 3YN/A
GM growth 5YN/A
F-Score5
Asset Turnover0.03
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.97 | ||
| Debt/FCF | 7.63 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 185.95% | ||
| Cap/Sales | 11.16% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 206.4% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score5
WACC16.41%
ROIC/WACCN/A
Cap/Depr(3y)145.14%
Cap/Depr(5y)128.04%
Cap/Sales(3y)9.15%
Cap/Sales(5y)7.82%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-15.64%
EPS 3Y-7.45%
EPS 5Y-0.78%
EPS Q2Q%-27.66%
EPS Next Y14.77%
EPS Next 2Y12.25%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)6.41%
Revenue growth 3Y5.23%
Revenue growth 5Y6.56%
Sales Q2Q%7.13%
Revenue Next Year6.13%
Revenue Next 2Y5.44%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1YN/A
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y189.15%
FCF growth 3Y-9.45%
FCF growth 5YN/A
OCF growth 1Y226.52%
OCF growth 3Y-5.07%
OCF growth 5Y102.74%